Foreign direct investment down 18% in 2012, according to UNCTAD - Foreign direct investment (FDI) fell 18% to $1350 billion in 2012, according to the annual report by UNCTAD, which was published on 26 June. The return to more vigorous levels of investment has not yet materialised due to the persistent fragility of the global economy and a certain political uncertainty, experts stress. UNCTAD's forecasts for 2013 are hardly any more optimistic, at close to 2012 levels ($1450 billion). A slight improvement is expected in the following years, with $1600 billion predicted for 2014 and $1800 billion for 2015. However, structural weaknesses in the global financial system, the possible deterioration of the macro-economic environment and political uncertainty in a number of key areas may worsen this picture and delay the recovery in investments still further, UNCTAD warns. For the first time in history, the developing countries have taken the lead as host countries for FDI, absorbing more than half of the flows (52%). Even so, these countries also experienced a slight drop in flows (around -4%), to $703 billion, which is still the second highest level on record. Asia, Latin America and the Caribbean continued to record historically high flows in 2012, but growth momentum weakened. Flows into Africa continued to rise. Flows of investment from the developing countries were worth $426 billion dollars, or a record share of 31% of the global total. The developing countries of Asia account for three quarters of these flows. Flows from Asia, Latin America and the Caribbean also remained at the same level as in 2011. FDI outflows from Africa almost tripled. In the category of the largest investors, China has climbed from sixth place to third place, behind the United States and Japan. FDI inflows to the developed economies, on the other hand, fell by 33% to $561 billion, a level last seen almost 10 years ago. Looking at individual regions, the decline was particularly pronounced in Europe, with a drop in flows of 42%. In North America, the decrease was 21%. In the Asia-Pacific region, Australia and New Zealand saw a combined drop of 14%. Looking at individual countries, FDI fell in 23, including the largest recipients of 2011, the United States and Belgium. In the UK, on the other hand, there was a 22% increase. Flows from the developed countries also dropped to a level close to 2009 figures. In 2012, flows from 22 of the 38 developed countries fell by around 23% overall, to $909 billion. Flows from Europe were down 37%, those from the United States 17%, whereas Japan saw an increase of 14%, holding on to its place as second-largest investor country in the world, behind the United States. (IL/transl.fl)